TaxTMI 
TaxTMI 
2022 (3) TMI 779
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....e take up solitary ground of appeal of the assessee in ITA No. 131/JP/2021 for adjudication. 4. The solitary issue raised by the assessee is that the ld. CIT(A) has erred in confirming the penalty amount of Rs. 1,41,840/- u/s 271CA of the Act on account of short collection of TCS. 4.1 Apropos the solitary ground of the assessee , the facts as emerges from the order ld. CIT(A), NFAC, Delhi dated 20-07-2021 emerges as under:- ''3.1 ....The appellant deductor was liable to collect the TCS @ 2% on the payment received in respect of royalty, RCC, ERCC Instt. dead rent, royalty from STP from the lease holder. The appellant collector collected the amount in short without reasonable cause. The appellant during the course of imposition of penalty and during the appellate proceedings has not furnished the reasonable cause for short deduction of the Tax. Therefore, the AO is justified in imposing the penalty u/s 271CA of the I.T. Act, 1961. Therefore, the penalty amounting to Rs. 141,840/- is confirmed. Thus the appeal on this ground is dismissed.'' 4.2 During the course of hearing, the ld.AR of the assessee filed the written submission and prayed that the ld. CIT(A), NFAC h....
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....97,153 on account of short collect of TCS. The ld.AR further submitted that the assessee filed an appeal before the ld. CIT(A) against the demand .TCS of Rs. 1,41,837/- and interest of Rs. 55,316/- who vide order dated 20-07-2021 directed the AO to verify the record and allow the credit of the assessee as the assessee has already paid more taxes than calculated by the AO. The observation of the ld. CIT(A), NFAC, Delhi is as under:- ''4.1.1 After considering to the above, the appellant had already deposited and filled the TCS return for financial year 2015-16 for total TCS Rs. 59,08,944/- which is more t4han the amount to be deposited Rs. 57,00,580/- as assessed by the assessing officer. The AO is directed to verify the record and allow the credit of the taxes paid by the appellant. Since the appellant has already paid more than calculated by the AO, therefore, the appeal is allowed for Statistical purposes.'' The ld.AR further submitted that when the quantum appeal has been allowed by the ld. CIT(A) NFAC, Delhi vide his order dated 20-07-2021 then there is no need to impose penalty by the JCIT, TDS, Jaipur. It will be better to mention the Section 271CA of the Act under....
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.... Hon'ble Supreme Court order dated 23rd Sept. 2021wherein Hon'ble Supreme Court directed that in cases where the limitation would have expired during the period between 15-03-2020 till 02-10-2021 notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 03-10-2021. 5.3 On the other hand, the ld. DR did not object to the submission of the ld.AR of the assessee but prayed to decide the issue on merit as deem fit and proper in the case. 5.4 We have heard the rival contentions and perused the materials available on record. We concur with the decision of Hon'ble Supreme Court dated 23rd Sept. 2021 and allow the delay of 25 days in filing the appeal by the assessee. 6.1 Apropos solitary of the assessee, the facts as emerges from the order of the ld. CIT(A) are as under:- '3.1 Ground No. 1:- Through this ground of appeal the appellant has challenged the imposition of penalty u/s 271CA of the I.T. Act amounting to Rs. 7,46,894/- on account of default of short collection of TCS. The appellant deductor was liable to collect the TCS @ 2% on the payment received in respect of royalty, RCC, ERCC In....
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....bserving as under:- 4.1 ........On the spot, verification was carried out at the office premises of the Appellant Collector on 1-10-2017 at Hasan Khan Mewat Nagar, Alwar. During the course of verification, it was found that the appellant has not collected the TCS at the applicable rate i.e. @ 2% on the payment received regarding royalty, RCC, ERCC Instt., Dead Rent and royalty from STP from the lease holder. The assessee collector is liable to collect TCS @ 2% on payment of Rs. 34,03,37,000/- received as loyalty, RCC, ERCC Instt. Dead Rent and royalty from STP from the lease holder. As per the details available with the department, it is observed that the assessee has made short collection of TCS amounting to Rs. 7,46,894/- on total payment received as Royalty and others of Rs. 34,03,37,000/- during F.Y. 2016-17 whereas the assessee collector was liable to collect TCS Rs. 68,06,740/- on the above amount but the assessee collector has made collection of TCS amounting to Rs. 60,59,846/- only. Hence, the assessee collector is in default for short collection of TCS of Rs. 7,46,894/- (Rs. 6806740 - 6059846) @ 2% as per u/s 206(c) of the I.T. Act, 1961. 4.1.1. After con....
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..... 10.1 In this appeal for the Assessment Year 2018-19, the assessee is aggrieved that the ld. CIT(A) NFAC, Delhi has erred in confirming the demand raised by the AO amounting to Rs. 9,43,660/- (including interest at Rs. 1,23,086/-) on account of short collection of TCS, Royalty, Dead Rent etc. In first appeal, the ld. CIT(A), NFAC, Delhi has dismissed the appeal by observing as under:- 3.1 ........On the spot verification was carried out at the office premises of the Appellant Collector on 1-10-2017 at Hasan Khan Mewat Nagar, Alwar. During the course of verification, it was found that the appellant has not collected the TCS at the applicable rate i.e. @ 2% on the payment received regarding royalty, RCC, ERCC Instt., Dead Rent and royalty from STP from the lease holder. The assessee collector is liable to collect TCS @ 2% on payment of Rs. 19,71,37,000/- received as loyalty, RCC, ERCC Instt. Dead Rent and royalty from STP from the lease holder. As per the details available with the department, it is observed that the assessee has made short collection of TCS amounting to Rs. 8,20,574/- on total payment received as Royalty and others of Rs. 19,7137,000/- during F.Y. 2017-....